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Chadwick Enterprises, Inc., operates several restaurants throughout the Midwest. Three of its restaurants located in the center of a large urban area have experienced declining

Chadwick Enterprises, Inc., operates several restaurants throughout the Midwest. Three of its restaurants located in the center of a large urban area have experienced declining profits due to declining population. The companys management has decided to test the assets of the restaurants for possible impairment. The relevant information for these assets is presented below. Assume that Chadwick Enterprises prepares its financial statements according to International Financial Reporting Standards. Book value $ 7.9 million Estimated undiscounted sum of future cash flows 4.7 million Fair value 4.2 million Assume that the fair value amount given equals both (a) the fair value less costs to sell and (b) the present value of estimated future cash flows. Required: 1. Determine the amount of the impairment loss. (Enter your answer in millions rounded to 1 decimal place, (i.e., 5,500,000 should be entered as 5.5).) 2. Determine the amount of the impairment loss assuming that the estimated undiscounted sum of future cash flows is $8.2 million and fair value is $5.7 million. (Enter your answer in millions rounded to 1 decimal place, (i.e., 5,500,000 should be entered as 5.5).)

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